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March 8, 2018

Key Mistakes You Should Avoid When Getting A Personal Loan

about personal loansIt’s always a stressful situation whenever you’re bombarded with numerous financial responsibilities at the same time – you know, those instances when your house bills, children’s tuition fee bills, business expenses are piling up on you. This kind of situation might force you to seek for immediate financial refuge, and in this context, a personal loan might just be the most comfortable solution for you to take. There’s nothing wrong in acquiring for a personal loan – that’s your decision and if you, think that this is the only way you can resolve all our financial woes, by all means, go ahead and file for one! However, if this is your first time to apply for a personal loan, there are certain things which you should avoid to make sure that your entire personal loan experience will be hassle-free.

Applying for a personal loan requires your time. It entails a lot of processes which you’re required to go through. The entire process is something that you should be careful since it will require resources from you. And to ensure that this process will go as smoothly as possible, stray away from committing any of these mistakes:

● You don’t have the clarity for the purpose of the loan: You might be enticed to apply for a personal loan because it doesn’t require rigorous background checking and it only requires minimal requirements from you. If these are the sole reasons pushing you to get a personal loan, you’re doing it all wrong. You should get a personal loan because you have an immediate financial need – you might be financing your sibling’s studies abroad or you might be saving up for a business. Whatever it is, you should have a clear picture of where the money will be spent on. Sure, personal loans might have low interest rates but you’re still paying more than what you’ve borrowed, that’s why you should be very keen on how and where you should spend your borrowed money.

● You don’t consider your repayment capacity: Once you’ve decided to apply for a personal loan, the only thing you might have in mind is how you will spend your borrowed money. This is normal, and there’s, nothing wrong with that notion but you should also remember that in this process, you’re a borrower and you’re expected to pay a certain amount to your lender. You should think first if you can actually repay the amount you’ve borrowed within the time frame given to you. Don’t borrow an amount which will require you to have significant adjustments in your life. Instead, opt for an amount which you’re confident in repaying from your monthly income.

● You approach too many lenders: While it’s always good to look for possible lenders which you can acquire personal loans, going overboard with this might have negative effects on your credit score. This happens because whenever you approach too many lenders in a short span of time, all of these queries will gradually reduce your credit score. In the eyes of banks and other credit company, you’re now considered as a credit hungry person and that’s not a good thing. Banks and other companies might have the assumption that you don’t know how to manage your finances that’s why you ended up asking help from too many lenders, and this might hinder you from securing approval for your loans in the future.

● You don’t disclose existing loan details: Remember the quote that says, “Honesty is the best policy”? Yep, this one’s still applicable in the financial context. The moment you talk with your lender about your personal loan application, be honest in informing the other party if you have existing loans. This is important because by doing so, you’re giving the lender more reasons to trust you (so it’ll also be easier for them to trust you with their money), and you can make negotiations with your lender regarding your repayment terms to ensure that you can still manage to pay all of your loans on time. But if you decide to mum this information to yourself, you might end up paying higher interest rates or worse, your loan application might be disapproved once the lender learns about this information from other sources.

● You don’t read through the fine print: Not everyone has the patience and the willingness to read through a document which consists of, let’s say, five pages of texts. Yes, it’s something that requires too much time and focus but if you’ve decided to apply for a personal loan in the coming days, you should be able to change your mindset. You should know how important it is to read whatever documents you and the lender might share throughout the entire process. Once you’re handed with any document, take the time to thoroughly read everything – and not just skim through it – and make sure that you understand everything that was written there. If you see terms or charges which are unclear to you, never be hesitant to ask your lender. You might trust the lender but all of your agreements will boil down to your signature, being used in the supporting documents.

● You don’t check your credit report: Your credit report plays a vital role in the approval or disapproval of your personal loan. Since personal loans do not require any collateral before the lender can allow you to borrow a certain amount of money, your credit report might be one of the strongest determinative factors for a lender’s decision. This will be an evidence of whether you have a good credit standing and if you still have enough finances to pay for another loan. If you want your personal loans to be approved, religiously check your credit report and get necessary corrections if needed. You don’t want to check your credit score the moment you apply for a loan as this might delay the entire process, check this for LendingKey reviews.

If the concept of personal loan is still new to you, you might have endless questions of how this works. While personal loans can give you the financial salvation you need right now, you should also be careful in managing it because failure to do so might damage your financial standing in the long run. Since you know what mistakes to avoid when getting a personal loan, you’re now a step closer to securing that seal of approval for your personal loan application!

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February 12, 2018

Few good advantages of Investing in ULIPs

ulip investmentsThe money market will provide you with investment instruments like ULIPs that come with a fair combination of investment and life coverage at once. The premium that you pay for ULIPs are segregated into 2 parts; one portion goes towards investment instruments present in the money market, while the other one goes towards meeting your risk coverage on life. There are a few inherent benefits attached to ULIPs.

5 key advantages of ULIPs over all conventional life insurance policies:

Identify the right blend of investment

Picking the market entities in the right blend often depends on your investment risk appetite. For those of you that are low-risk takers, investing in debt funds is a good ploy. Likewise the moderate risk-takers can invest in balanced funds, while the high-risk bearers can think of equity funds. Balanced funds are a good option lying between equity funds and debt funds. You’ll be able to switch funds once you gain considerable market outlook.

Investment Flexibility

With an ULIP, you’ll gain the right to invest your entire premium value besides gaining opportunities to allocate additional amounts on the policy. Other investment plans don’t yield so much of flexibility. Depending on your risk appetite and your financial profile, you may choose between these two investment strategies:

Life-Stage Strategy: The years remaining towards your policy maturity and your age help in asset allocation.

Self-Managed Strategy: Your fund choice helps in allocating your money. This option safeguards the financial future of your child even when you aren’t there.

Long term investment

ULIPs prove to be a great option for fulfilling long-term investment goals e.g. launching a start-up, buying your new car, and buying a property. ULIPs are designed to yield more returns and that too for a longer duration; they owe this power to their compounding nature. Even if you decide on quitting the ULIP policies after a period of 5 years, you’ll be amazed to see how much more you’ve saved than what you’d see with other investment options. Your money will grow with a much greater momentum and for a longer duration than how you usually see it grow in your savings bank or with your fixed deposits. All you need to do is to determine the amount of investment with the help of an online premium calculator.

Life coverage

Life insurance companies are only known to offer ULIPs in the form of a product. Besides yielding financial protection, ULIPs are known to fulfill your investment needs. Compared to a term plan, the life cover attached to ULIPs may be smaller but they do come with life cover. When it comes to fulfilling your financial goals in the long run, ULIPs constitute a strong investment opportunity. Prior to investing in ULIPs, you must check out the performance of all individual funds in great details. This is likely to provide more insight into investment options with quality returns.

Tax Rebates

Tax benefits aren’t always attached to investment option that you come across in the market. ULIPs come with a combination of tax benefits and life coverage. Under section 80C of the Income Tax Act, you’ll be entitled to receive tax rebates on all paid up premiums. Likewise, all of the payouts that you receive are entitled to tax exemption under section 10D. Besides seeing your money grow, you’ll be happy with how much you’ll save in the end.

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November 28, 2017

Skip the Rat Race and Invest in IPOs with Mutual Funds

invest in IPO'sThe listing of a private company on the stock exchange is known as Initial Public Offering (IPO). It is at this point that investors are invited to bid for buying the shares of the company that was held privately thus far. Based on the past performance of the company, the offer price range is determined and once all bids are received, generally shares are allocated on a pro-rata basis.

The crazy chase to invest in IPO

IPO investments attract a lot of investors as it has the potential to give very high returns. It is believed that the investment made at the time of IPO give high returns at the time of listing. However, as with other types of equities, there is a high risk involved when you invest in an IPO.

The funds raised through an IPO are used for several purposes by the company. These include clearing off debts, expanding and improving their operations, or using it to meetworking capital needs.

Before you choose to invest in IPOs, you must remember that all IPOs are not open to general public. The underwriters choose the category of people for which the IPO is opened.

If you opt to invest in IPOs, you must be aware of the risks associated with these financial products. Here are four things you should keep in mind while investing in an IPO.

1. All offerings are not suitable for all kinds of investors. Consider your financial situation and goals before making a decision.

2. Read the draft red herring prospectus. This will help you understand how the funds will be utilized. The prospectus also provides information about the objectives and fundamentals of the company and its future growth prospects.

3. You must rely on facts and not fall prey to marketing strategies used by agencies to entice investors.

4. Analyze the promoters and their backgrounds. IPOs that have reputed institutions and government backing are safer.

Investing in an IPO must be a well-thought decision. It is important to ensure the risk level suits your personal financial situation and appetite. With IPO investments, you may make money or lose your capital; therefore, be cautious before you apply for one.

Investing in IPO through mutual funds

As mentioned before, if an IPO has institutional or government investments, the risks are significantly reduced. Until recently, mutual funds did not invest in IPOs because of the high risks. However, that is no longer the case. Mutual funds have recently begun investing in quality IPOs issued by small and medium enterprises (SMEs).

Here are three benefits of investing in IPOs through mutual funds.

1. Investing in mutual funds online for retail investors is easily available and provides greater flexibility. You are able to gain exposure to the stock market at an affordable entry price.

2. The schemes are managed by experienced professionals who analyze and study the IPOs and the overall market. This reduces your risks because the fund managers and their research teams do the homework for you. Moreover, you are able to diversify your portfolio further reducing your risks.

3. IPO allotment often happens on a pro-rata basis. Therefore, you may be allotted less than the applied number of shares. However, institutions have a preferential allotment, which is beneficial.

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October 21, 2017

Are you paying more taxes than is necessary? Useful tips to lower your property taxes

tax for the propertyIt is the duty of every citizen to pay taxes to the government so as to aid with national and regional developmental objectives. It’s a crime not to pay your taxes and you could face a jail term if you knowingly or unknowingly fail to make your tax payments. If you own property, whether residential or commercial, you have to make regular payments to your local and federal government in the form of property taxes. The amount you pay as property tax depends on the size and value of your property with those with large property investments paying more taxes for their property. However, the tax man may make errors when determining the value of your home and you could end up paying more than you should in taxes. If you feel that you are paying more taxes than is necessary, there are a few things that you can do to solve the situation and here are some of them.

1. Visit your local tax office.

The first step in rectifying your tax situation is to visit your local tax office. Once at the tax office, inquire to find out the valuation of your property as per their recent analysis. If you have issues with their valuation, inquire to find out what one needs to do to file an appeal. If there are fees to be paid and forms to be filled, let them tell you how much you should pay and the where you can find the tax appeal forms. It is important to do everything according to the law as deviations reduce your chances of getting your tax appeal approved.

2. Get independent appraisal.

You should hire an independent appraiser to determine the value of your home for your tax appeal. Your property may have depreciated in value from the last time the taxman assessed it and an independent appraisal will help you determine by how much. Such professionals are not free and you will have to pay for their services. The upside is that you will be able to determine the true value of your home for your tax appeal.

3. Limit outdoor construction.

Outdoor structures increase the value of a home and as a result, you will have to pay more taxes for your property. Such structures include garages, carports and outdoor shades. If you want to lower your taxes, you should, therefore, strive to limit the outdoor structures in your home or at least wait until after the next property assessment by the taxman.

4. Check with your neighbors.

If the homes in your neighborhood are the same, then you and your neighbors should be paying similar taxes for your property. You should, therefore, check with your neighbors to find out how much taxes they are paying for their homes. If you find any disparities, raise that issue with your local tax agency.

Conclusion.

Paying taxes is very important but if you find yourself experiencing difficulties in paying them and your other bills, you should consider filing for Bankruptcy in Toronto.

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October 19, 2017

What You Should Know About Startup Accelerators

startup financeWith so many startup companies, the competition is fierce. It doesn’t matter what field you’re in. It’s likely that there are many other entrepreneurs in your niche. The trick is finding a way to make your company stand out above the rest. For some companies, that means working with a startup accelerator.

What is it?

A startup accelerator is an experience that supports the growth of an early company. To accomplish this growth, they provide education, mentoring, and financing. They give you a way to build your company from the ground up. The accelerator only lasts for a certain amount of time; it’s a rapid growth process. While the time period might be short, you can see a great deal of growth in the process. In only a few months, you can see the same growth that you would expect in years of hard work.

Start-up accelerators work for almost any type of industry you can imagine. For example, new insurance companies can benefit from Insurance accelerators. An insurance accelerator would specifically focus on growing a start-up insurance company. Meanwhile, a new clothing brand could find an appropriate accelerator to give them intense growth. There’s something for every company.

What makes them so special?

There are many different ways to cultivate a start-up. However, an accelerator is particularly effective. There are a few reasons for this. For one, there’s the fixed time frame. Instead of having an open-ended agreement with no true end date, you have a set time frame. It’s easier to analyze your results and predict your company’s future when you have strict time frame. You get results, and you get them before your time is up.

There’s also the fact that an accelerator uses mentorship to get results. Unlike crowd-funding campaigns and other types of investors, accelerators give you advice. While that advice helps your company in the present, it also helps your company in the future. You can learn invaluable business skills through mentorship. Additionally, you can gain insight into your industry and use that insight for years to come.

Finally, accelerators are cohort-based. For years, educators have seen the benefits of an education cohort-based environment. Those same benefits translate to business education. Being part of a larger group is a great way to grow your company.

Do accelerators really work?

While the concept of accelerators is sound, it’s important to ask yourself if they really work. It seems so, considering that many entrepreneurs would be happy to relive the experience. About 90% of entrepreneurs in a survey said that they would do the accelerator program again. Similarly, 95% of them said that the accelerator was worth equity stake that they lost. The time and equity lost in an accelerator program seems well-worth the gain.

An accelerator program might not be the right option for everyone. However, it could be the right option for your company. If you’re looking for a way to gain insight and knowledge while gaining momentum in your business, an accelerator is a great option. You could see huge business growth in only a short time.

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